Life can get stressful when you look at an unexpected bill or are forced to make a sizable necessary purchase. The good news is an installment loan could help you get the money required for financial stability. You may have heard about Credit Cube, but what do they offer? Is there a better option available?
Keep reading to learn more about the borrowing process and everything you need to know about Credit Cube before making a final decision about your finances.
Finding the Right Personal Loan
Many people apply for personal loans when they need financial assistance. But how can someone ensure they find the right personal loan? There are different lenders to choose from, and they all offer unique loan terms. Here’s everything you need to know about personal loans so you can choose the best loan offer for your situation.
What Is a Personal Loan?
A personal installment loan is a financial product offered by banks, credit unions, and online lenders. A borrower gets a loan that they repay through consistent monthly payments for a set period. Unlike other types of loans, personal loans usually do not have a specific purpose.
Personal loans can be an ideal loan option for nearly any emergency, such as:
- Getting money to pay for medical care
- Scheduling a car repair or buying auto parts
- Fixing an HVAC system
- Covering the cost of new eyeglasses or contacts
- Getting an impromptu dental procedure
Most personal loans are unsecured, meaning the borrower does not have to provide collateral to borrow money. Collateral is a form of financial security that protects the lender against default, such as a car title or cash held in a savings account. While the use of collateral is convenient for a lender, a borrower stands to lose a valuable possession.
How Much Can I Get With Personal Loans?
Many personal loan lenders offer a wide range of loan amounts. Typically, loans range from a few hundred dollars to a few thousand. Keep in mind that every lender has a minimum and maximum loan amount they offer. Suppose you need a specific amount that is very small or substantial. In that case, it’s in your best interest to compare multiple lenders to find the right loan.
The amount you can get with a personal loan will depend on your credit history and income. A bad credit score may make getting the maximum loan amount a lender offers challenging because a low score indicates financial risk. Higher loans are typically reserved for consumers with perfect credit scores. Suppose you have a poor credit score and need a high loan amount. In that case, it’s in your best interest to inquire with lenders that advertise flexible credit requirements.
Your monthly income will also affect the amount you can get with a personal installment loan. A lender will not offer a substantial loan amount to someone with low income because they do not want the borrower to struggle with repayment. Rest assured that a financial institution will work diligently to make a loan offer compatible with your financial situation.
Should I Get a Short or Extended Repayment Period?
The repayment length of a personal loan is the number of payments you will have to make to pay off the debt. If you obtain a 12-month repayment term, you will need to make 12 loan payments. The repayment length for personal loans varies per lender, but most tend to last between two months up to a couple of years.
A short repayment period may result in higher monthly payments because you have less time to pay off the borrowed amount. Although the benefit of a short loan term is that you could save on interest fees. In contrast, an extended repayment length may help you keep more money in your pocket every month, although the total cost of the loan may be higher. The best option depends on your financial preferences.
Remember that you can pay off a loan early to avoid interest. Borrowers can speed up their loan repayment schedule by making more than one payment every month or increasing the monthly payment amount. But before trying to save on interest charges, ensure your lender does not charge prepayment penalties. This type of penalty fee is a charge for deviating from the repayment schedule detailed in your loan agreement.
Does a Personal Loan Affect Credit?
Are you interested in applying for a personal loan? In that case, you may worry about the effect a loan could have on your credit score. The truth is that applying for any type of loan will inevitably affect your credit score because you must undergo a hard credit check.
There are two types of credit checks that financial institutions perform. Learning about the differences is critical to better understand how your credit score and credit report will change.
- Soft Credit Check — A soft credit check is also known as a soft pull or soft credit inquiry. Soft credit checks occur when you check your current score, or a company (such as an insurance provider or lender) needs to review your creditworthiness. While a soft inquiry may appear on your credit reports, it will not negatively affect your credit.
- Hard Credit Check — A hard credit check is the same as a hard pull or hard credit inquiry. Hard credit checks are done when a consumer submits an application for funding. Unlike soft credit checks, hard pulls can decrease credit scores by a few points and remain on credit reports for two years.
Bad credit borrowers may worry about further decreasing a low score, but there are ways to combat this temporary change. Once you have taken out a personal loan, you can work on recovering and further increasing your score by avoiding late payments.
A borrower’s payment history is one of the most critical factors for credit calculation. If you establish a long history of timely loan payments, you may see a positive effect on your credit rating. However, this only applies if the lender you work with sends information to the credit reporting bureaus. If your lender does not report payments, your on-time loan payments will not affect your credit score. Talk to your lender to determine which credit bureaus receive reports and how often.
Types of Personal Loans Available
Different types of personal loans are available, and it’s essential to know about them before moving forward with a loan offer. Read about the various personal loan options available below.
Bad Credit Installment Loans
Many consumers settle for payday loans because credit scores are not essential for approval. But keep in mind that some personal lenders offer bad credit installment loans. These are loans for bad credit borrowers that need fast emergency cash. The qualification requirements for bad credit loans are flexible, so it’s possible to get approval to dispute poor credit. Unlike a payday loan, a bad credit installment loan typically has longer repayment terms and higher loan amounts.
No Credit Check Loans
There are some direct lenders that offer installment loans with no hard credit checks until you apply. You may wonder how this works. When you initially inquire about a personal loan, you may only have to submit basic information to get a preliminary approval decision. You may determine if you qualify before submitting a loan application with a lender. A pre-approval decision can help consumers avoid multiple hard credit inquiries on their credit checks.
Same-Day Personal Loans
Many lenders offer installment loans with same-day funding. If you need money quickly, you can generally expect to receive a direct deposit sent swiftly to your bank account. Remember that the time you submit your loan application matters because a financial institution may have a cut-off time for same-day funding. For example, if you do not apply by noon, you may have to wait one business day to get your loan proceeds.
Secured Personal Loans
Most personal installment loans are unsecured, but some financial institutions offer secured loans. A secured loan requires the borrower to provide a valuable asset as collateral. Using collateral offers financial security to the lender, which may incentivize them to work with bad credit borrowers and offer better loan terms. However, secured loans are risky because the borrower could lose possession of their collateral if they experience repayment difficulties.
Online Personal Loans
Consumers could apply for a personal loan at a store location or online. Online installment loans are no different from traditional loans but may provide better perks. Borrowers can generally expect more convenience and a faster approval process with online personal loans. Many online lenders offer fast direct deposits, but borrowers are required to have an active bank account to qualify.
Loans Like Credit Cube: What You Need To Know
Credit Cube is an online direct lender that provides short-term installment loans for unexpected emergencies. The headquarters for Credit Cube is located in California, although this lender provides funding in various states across the nation.
CreditCube is a Tribal enterprise owned and operated by the Big Valley Band of Pomo Indians. The Big Valley Band of Pomo Indians is a federally-recognized American Indian tribe and sovereign government that operates Credit Cube. All communication and transactions done through the Credit Cube website are considered to have been done on tribal land.
When a consumer borrows through Credit Cube, they agree that the loan will be governed by and construed in accordance with the laws of the Big Valley Band of Pomo Indians and federal law. A borrower’s residential state laws will not apply to a tribal loan because Indian tribes are sovereign nations with the right to enact laws in relation to business activity.
Credit Cube offers personal loans from $200 up to $5,000. However, the maximum amount for first-time customers is a $500 loan. Returning customers can apply for the maximum loan amount of $5,000. Still, eligibility depends on their credit history, Loyalty Program status, and ability to repay.
The annual percentage rate (APR) for Credit Cube differs depending if you are a new or returning customer. New customers may receive the maximum APR (779.97%) on their first personal loan. However, returning customers at the VIP level may expect to get an APR between 259.94% to 779.97%. The APR on a second loan is based on a customer’s payment history, Loyalty Program status, and specific credit criteria.
Credit Cube provides a $300 loan sample payment schedule for new customers. If a new applicant borrows $300 with a 779.97% APR, the finance charge will be $1,161.97. After making sixteen monthly payments of $91.37, the total loan amount ends up being $1,461.97.
Credit Cube states on its website that they are an expensive form of borrowing. This loan option is not meant to be a long-term financial solution. Credit Cube does not charge prepayment penalties and encourages customers to make early payments to minimize the cost of borrowing money.
How Does the Loyalty Program Work?
The Credit Cube Loyalty Program is a free program that rewards loyal customers. Borrowers earn points every time they pay off a Credit Cube installment loan. Individuals with a lot of points can access larger loans at reduced interest rates.
There is no charge to take advantage of the Credit Cube Loyalty Program. First-time customers automatically get 200 loyalty points upon approval. Every successful monthly payment is worth 25 points, and borrowers get half a point for every dollar they repay. When the personal loan is paid in full, the borrower receives 250 additional loyalty points.
In addition, borrowers can earn points through other methods. For example, a video or written testimonial on Credit Cube is worth 50 points, and a certified friend referral is worth 100 points. Customers automatically move up to a higher Loyalty Program status when they reach a specific number of points.
There are five status levels in the Credit Cube Loyalty Program:
- Bronze — No points are required to get a Bronze status. Loans up to $500.
- Silver — 700 points are required to borrow up to $1,000 and get a 16% discount on fees.
- Gold — 1,600 points are required to borrow up to $1,500 and get a 33% discount on fees.
- Platinum — 3,000 points are required to borrow up to $2,000 with a 50% discount on fees.
- VIP — 5,000 points are required to borrow up to $5,000 with a 66% discount on fees.
While borrowers can earn points through the Credit Cube Loyalty Program, they may also lose them. A missing or late payment during the loan period will result in a 75-point penalty and NSF or late fee of $25.
Who Are They For?
Credit Cube offers personal installment loans for individuals needing small loans quickly for unexpected emergencies. Examples of emergency costs include car repair bills, medical care, or essential travel expenses.
In order to qualify for a Credit Cube loan, applicants must meet the following requirements:
- Be at least 18 years of age.
- Live in a state where Credit Cube provides services.
- Have an active and valid checking account.
- Have a job or reliable source of income.
- Have an email address and verifiable phone number.
- Not be listed as a Covered Borrower in the Military Lending Act database.
New customers may only borrow up to $500, so if you need more money for medical bills or car repairs, you may have to find an alternative loan option. Approved applicants can generally expect to get loan proceeds in their bank account within the next business day if the loan application is processed and approved before 3 p.m. EST.
Keep in mind that Credit Cube does not lend to residents in the following states:
- Pennsylvania
- Connecticut
- Minnesota
- New York
- Vermont
- Virginia
- West Virginia
- Georgia
How Will the Application Process Work?
Interested borrowers can start the application process by filling out the online form. You must provide information about yourself, your employment, and your finances.
Once you have submitted the required information, you can expect an instant approval decision. However, you may have to speak with a loan agent before getting approval if Credit Cube needs to verify your identity, income, or banking information. Applicants can monitor their application status by checking their online account for updates.
Applicants will be able to see the payment schedule and annual percentage rate (APR) in their loan agreement. The loan agreement will have critical information, such as:
- The total number of payments.
- The monthly payment amounts.
- The monthly payment dates.
- Specific fees (late fees, NSF fees, etc.).
If you agree to the proposed loan terms, you can e-sign the loan agreement. The final step is getting your Credit Cube loan. Remember that applicants must have a valid checking account to receive their money via direct deposit.
CreditNinja: How Does It Compare?
CreditNinja is a premier direct lender providing online personal loans to help individuals deal with unexpected expenses. Individuals looking for an alternative to traditional loan options can apply for fast funding through a straightforward and convenient application process.
Since starting in the lending industry in 2018, CreditNinja has helped over 275,000 people get quick financial relief. We have dispersed over 475,000 loans for various emergency costs, such as prescription costs, car repairs, etc.
Keep reading to learn more about CreditNinja and how this loan option works.
CreditNinja’s Installment Loans
CreditNinja specializes in offering online personal loans to consumers across the nation. Every loan offer is unique to fit seamlessly into your existing budget. We provide personalized loan offers to eligible borrowers dealing with unforeseen financial emergencies.
Borrowers are able to get small or large loans to deal with all types of unexpected bills or purchases. First-time borrowers are not limited to any specific loan amount. As long as you meet the qualifying requirements and credit criteria, it’s possible to get the maximum loan amount.
The loan period also ranges greatly, so you can decide which type of repayment schedule works best for you. A short loan term can help you save on interest fees, while an extended term may result in low monthly payments. But suppose you get a long-term personal loan and want to reduce the overall cost of borrowing. Our customers have the ability to make early payments because we do not charge prepayment penalty fees!
Who Should Pick CreditNinja?
CreditNinja is a financing option for consumers that want an installment loan with great benefits and a hassle-free process.
At CreditNinja, we offer fast funding for people that cannot wait days or weeks for financial assistance. If you are eligible for a personal loan, you could get money deposited in your bank account as soon as the same or the next business day.*
If your credit score is on the lower end, you may have worries about qualifying for an emergency loan. After all, many low-credit borrowers typically find it challenging to get loan approval. But we handle applications a little differently at CreditNinja. While many lenders base approval solely on credit scores, we take multiple factors into consideration. We look at your payment history, existing debt, and more. Credit scores do not provide a complete overview of a person’s financial potential, so we perform thorough evaluations.
How Will the Loan Process Work?
The CreditNinja application process only takes three simple steps. You can start and complete the entire process online! Visiting a brick and mortar or looking for multiple documents is unnecessary. You only need a computer, tablet, or smartphone to apply for an online personal loan today.
Step One: Application
The first step is filling out the streamlined online application form. You will need to provide basic personal and financial information. Rest assured that your information is confidential and secure through our encrypted website.
Step Two: Approval
CreditNinja provides quick approval decisions. Applicants may find out if they are eligible within a few minutes. You may receive a loan offer if you qualify for a personal loan. Look over the proposed loan terms carefully to understand your repayment details.
Step Three: Funding
If you are ready to proceed with your loan offer, you can electronically sign the loan agreement and get your money! To ensure you get your money swiftly, you will need to complete the secure bank verification process. Bank verification helps CreditNinja avoid delivery issues so your money is securely sent to your bank account. Through online deposits, we can help customers get their money as soon as the same day!*
*Applications approved before 10:30 a.m. CT Monday-Friday are generally funded the same business day. Applications approved after this time are typically funded the next business day. Some applications may require additional verification. If approved, the loan will be funded the business day after additional verification is completed.
References:
About Us│Credit Cube
Frequently Asked Questions│Credit Cube
Rates & Terms│Credit Cube
